Cha&Kwon Law Offices examined whether 1) “A”, who was previously a board member of corporation A and is now the representative of the overseas corporation B, and 2) the overseas corporation B fall under the ‘affiliated person’ based on the Act on Reporting and Using Specified Financial Transaction Information (hereinafter “the Act”) Article 10-20, sub-paragraph 5.

The Enforcement Decree of the Act Article 10-20, which was amended on October 5th, 2021, restricts the VASPs from mediating, recommending, or deputizing the transaction or exchange of virtual assets issued by the VASP itself or its affiliated person under certain standards. (The ‘affiliated person’ is defined under each sub-paragraph of Article 34, paragraph 4 of the Enforcement Decree of the Commercial Act.)

The scope of the Enforcement Decree of the Commercial Act Article 34, paragraph 4 that determines affiliated person is broad, and includes people who effect the company’s major management matters in practice.

After reviewing actual circumstances and the documents provided by corporation A carefully, Cha&Kwon Law Offices provide legal advice on whether the transaction between corporate A and B is a restricted one under the Act. 

Because the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information was implemented recently or is facing implementation, a legal expert’s examination is needed on the interpretation and application of the Act. Thus, please do not hesitate to contact us if you need any legal advice.